- dynaCERT is at the beginning of a major upside move as the market has only started to price in the reality of the magnitude developing for its fuel saving and Carbon Emission Reduction Technology.
- dynaCERT’s HydraGEN™ (HG) technology is proven (on diesel trucks) to result in up to 88.7% reduction in NOx emissions, ~50% reduction in CO, 6-19% reduction in CO2, up to 57.1% reduction in Total Hydrocarbon emissions, 55%+ reduction in particulate matter (no black smoke), up to ~20% reduction in fuel consumption, provides better torque, and lower maintenance costs.
- dynaCERT holds the world wide patents on the means and methods of monitoring and monetizing carbon credits within emission reductions in diesel engines, dynaCERT holds this in 12 different verticals. dynaCERT is now in the process of certification so carbon credits generated and tracked can be sold on the open market. This alone, once approved and gained traction, has serious potential to catapult dynaCERT into a multi-billion Fortune 500 company.
dynaCERT Inc. (TSX: DYA) (OTCQB: DYFSF) (Frankfurt: DMI) recently graduated to trading on the Canadian TSX Big Board. As a condition, prior to listing transition, the TSX exchange required dynaCERT do one capital raise based on a brokered deal (despite the fact the Company did NOT require the funds). Demand to participate was exceptionally high and as a result 5 brokers came together as a consortium, acknowledging the future is so bright for dynaCERT that they all wanted to be part of this emerging Environmental, Social and Governance (ESG) investment. HG Carbon Emission Reduction Technology has taken many years (~C$60 million) to perfect and is now just beginning to scale, with major potential as the only company with the patents and technology, proven, in production, able to provide an immediate solution to reduce global air pollution. The broker consortium did a bought deal, raising C$21 million from institutions overnight, however dynaCERT paired it down and accepted ~C$8M.
dynaCERT is now recognized in important circles as the future of carbon credits. The United Nations has certified dynaCERT’s product under its Smart Sustainable Cities Program. Additionally, earlier this year, dynaCERT’s CEO was invited to be a keynote speaker at the World Climate Summit in the UK (originally scheduled for November-2020), they asked the CEO to speak on the world's carbon credits and the future of the world's carbon credits. Due to COVID19 the summit has been postponed until the later part of 2021, but the fact dynaCERT is earmarked as a keynote guest speaker speaks volumes to the level of coordinated governmental support for dynaCERT's carbon credit tracking/auditing technology to be advanced globally as the only universally accepted standard ready for mass adoption. See overview further below of dynaCERT’s proprietary HydraLytica™ tracking & auditing software, how it is key for the Company’s carbon credit plans, and just how big this is setting up to be.
dynaCERT Inc. is looking exceptionally strong on all fronts. The Company has re-emerged from the COVID-19 hiatus financially healthy and appears just now entering a hockey-stick pattern of growth. Shares of DYA currently trades under C$1/share and present an opportunity for investors to experience extraordinary gains. In fact, the Company’s CEO, Jim Payne, minces no words, he clearly envisions dynaCERT eventually growing to becoming a Fortune 500 company. The independent investment bank GBC AG, headquartered in Augsburg, Germany upgraded (in August-2020) its near-term price target for DYA to $2.20/share, and sees a mid-term pathway to even significantly higher valuations. There are over 1 billion diesel engines in the world, including over 200 million diesel trucks -- dynaCERT’s HG units are just starting to penetrate various industrial sectors, plus there is the entire carbon credit division with dynaCERT taking the lead globally, it is still under development and yet to begin monetization; some investment pundits have stated a pathway to >$20+/share near to mid-term is not unreasonable with the right news flow.
A class-8 engine HG-1 unit goes out the door to a dealer for ~C$6,200 to dynaCERT netting 50% gross margins – the math will reach in the multi-billions of dollars in short-order as this takes off globally. Haywood Securities performed an upside case (3 shifts/day = 72,000 units/yr) based on dynaCERT’s current production capacity of HG-1 units at its facility in Toronto, Ontario and derived C$223M/annum in gross profit headed dynaCERT’s way. Then there is the potential for refrigeration HG2 units (reefer units); there are three times the number of reefer units than there are class-8 trucks and many of these reefer units run 24/7 keeping food cold. Then add in the future potential for recurring revenue streams from carbon credit revenue as an attractive added value proposition. dynaCERT now has ~40 dealers worldwide and is looking at serious growth potential. In Europe the MOSOLF Group has taken the lead in Europe, opening dedicated showrooms, and hiring scores of new employees dedicated 100% full-time to marketing and installation of dynaCERT's HG technology in Germany, France, Benelux, and Poland. Additionally, the recent (August 31, 2020) addition of the Alltruck Network in Europe is major and should contribute toward exploding growth (Alltruck has over 800 centers across Europe). Already dynaCERT is in discussion with other counties (e.g. India and Mexico) to build plants.
Emerging from COVID-19, the Company has more than adequate cash reserves (~C$20M cash entering September-2020 and virtually no significant debt), a better Assembly Plant, an improved R&D facility, significant product improvements, and is working on clearing a continued backlog of previously announced purchase orders, additionally new orders (including many reorders from highly satisfied clients looking to expand adoption of the technology that saves them money) continue to come in at an increasingly faster rate. For example, just this month, the Company announced that it has agreed to equip diesel powered vehicles of the City of Woodstock, Ontario.
Below is an overview of dynaCERT’s unique and proprietary technologies broken into three categories:
1) HydraGEN TM,
2) HydraLytica TM, and
3) dynaCERT's carbon credit management system.
1) dynaCERT’s HydraGENTM technology is proven through multiple top-level independent lab studies in various jurisdictions around the globe (TUV North and South in UK, PIT Group in North America, ICAT in India, labs in the UAE, etc…) to reduce harmful emission in diesel transport trucks and improve fuel economy. Transport trucks were dynaCERT’s first target market, the Company now makes different sized HG units and more industries are starting to adopt the technology -- look for exponential growth across multiple sectors.
Figure 1a. (above) HG1 Unit installed on diesel truck.
Figure 2. (above) Various HG unit modles.
12 different verticals:
Figure 3. (above) Industries served, 12 different verticals.
The Company currently installs its HG technology on class 8 trucks, buses, refrigerator trailers, small trucks, electrical power generation units of all sizes, farming equipment and agriculture equipment, construction equipment, mining equipment, and it is now moving into marine vessels (the first ships are now being organized for installs). The Company believes it will also at some point in the future be installing its technology on ocean going vessels (which are major polluters; one container ship can spew the equivalent pollution per annum of 50 million cars), train locomotives, and it is currently working with a group in Europe to develop a unit for passenger vehicles.
dynaCERT is gaining a strong foothold in the mining sector now, where a single piece of large equipment can burn over $1M/year in fuel. Feedback from mining experts and dealers servicing this industry reveal that it is not uncommon for a capital outlay (to buy a HG unit) to be recouped with a ROI payback within 8 months from a nominal 5% fuel savings.
2) HydraLytica TM is dynaCERT’s proprietary software with remote real-time telematics which the Company has retained worldwide experts to establish an audit trail of fuel savings and future carbon credits. dynaCERT's telematics developer invented Apple PayTM and PayPalTM. Related to HydraLytica™, dynaCERT is also greatly escalating its scope of applications and utility to respond to the growing industry needs of Logistics companies and the broader Trucking Management software ecosystem. On September 23, 2020 the Company announced that dynaCERT International Strategic Holdings Inc. (“DISH”), a wholly-owned subsidiary of dynaCERT, has agreed with Corsario Ltd. of Mississauga, Canada, dynaCERT’s HydraLytica™ software developer, to magnify and maintain the functionality of its new proprietary suite of FreightTech software applications. GP LogiX Inc., a wholly-owned subsidiary of Corsario established specifically for this single purpose, will market the functionality of dynaCERT’s new FreightTech software and share equally with DISH all financial benefits, thus providing yet another stream of cash flow to dynaCERT, through DISH.
3) dynaCERT's carbon credit management system: dynaCERT holds the world wide patents on the means and methods of monitoring and monetizing carbon credits within emission reductions in diesel engines, dynaCERT holds this in 12 different verticals. Looking at dynaCERT’s long haul trucking market alone, a truck can generate as much as $3,000 in carbon credits per annum. dynaCERT’s plan is once it has gone through approval with VERRA authority, dynaCERT will maintain 50% of the carbon credit$ and 50% of it will go to the fleet owners. The Methodology now in for approval with VERRA USA uses dynaCERT's patented HydraGEN™ Technology to lower carbon emissions and its HydraLytica™ Telematics technology to securely record carbon emissions and other non-personal data from diesel and gas engines. dynaCERT’s application is currently being dealt with, led by Environmental-partners of the UK.
The bottom line: The time to establish a long position in dynaCERT is now. Its technologies are proven, proprietary, and patented. The Company has the ability to monitor and monetize carbon credits. dynaCERT has enormous near-term growth potential that is reflected in the late stage trials and certificate processes in large markets in Canada, the USA, South America, Europe, South Asia, Middle East. This has the potential to get very large across vertical market segments from trucks, reefer trailers, buses, heavy construction, mining equipment, electrical power generation, marine and locomotive. The technology has a compelling value proposition to end users. The Company presents a very attractive business model with strong margins, has a very experienced and seasoned management team and board to realize success.
For further DD on dynaCERT Inc. see the following URLs:
Corporate website: https://dynacert.com
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Fredrick William, BA Ec.
Fredrick is a freelance information services professional and consultant to several financial publications, he monitors and invests in the resource, technology, consumer staples, healthcare, financial, energy, utilities, and biotechnology/pharmaceutical sectors.
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